The Bombay Stock Exchange’s (BSE) benchmark 30-share Sensitive Index (Sensex) zoomed by 305.07 points (1.65 per cent) on Tuesday to a two-month high of 18,842.08 after US-based global credit rating agency Moody’s termed India’s outlook ‘stable’. ‘India’s Baa3 rating and stable outlook are supported by credit strengths which include a large, diverse economy, strong GDP growth and savings, and investment rates that exceed emerging market averages,’ Moody’s said in its Credit Analysis on India report.
‘The reaffirmation of a stable outlook on India by Moody’s sentimentally aided the rise in the markets,’ explained Inventure Growth & Securities Head (Research) Milan Bavishi. Besides, Prime Minister Manmohan Singh’s comment that he was confident of his UPA coalition government’s numbers in Parliament further boosted the market mood. Singh was commenting on the stalemate in Parliament over the issue of foreign direct investment (FDI) in multi-brand retail, which had led to the adjournment of the Lok Sabha and Rajya Sabha for the fourth day in a row since the Winter Session began. It is now almost certain that the move to introduce FDI in multi-brand retail, which the Union government had earlier cleared through an executive order without taking approval from the elected representatives of the people, will not be blocked by Parliament. Observers say that Moody’s carried out its latest appraisal of India’s sovereign credit rating and outlook at least partly confident that PM Manmohan Singh would leave no stone unturned, including even embarrassment on the floor of Parliament, to tune India’s policy in the interests of foreign retail giants.
On news of the Moody’s evaluation, buying in the market was so strong that all 13 sectoral indices of the BSE closed with gains of 0.27-3.2 per cent. The National Stock Exchange’s 50-stock index, Nifty, too shot up by 91.55 points (1.62 per cent) to a two-month high of 5,727.45. [WITH INPUTS FROM PTI]
‘The reaffirmation of a stable outlook on India by Moody’s sentimentally aided the rise in the markets,’ explained Inventure Growth & Securities Head (Research) Milan Bavishi. Besides, Prime Minister Manmohan Singh’s comment that he was confident of his UPA coalition government’s numbers in Parliament further boosted the market mood. Singh was commenting on the stalemate in Parliament over the issue of foreign direct investment (FDI) in multi-brand retail, which had led to the adjournment of the Lok Sabha and Rajya Sabha for the fourth day in a row since the Winter Session began. It is now almost certain that the move to introduce FDI in multi-brand retail, which the Union government had earlier cleared through an executive order without taking approval from the elected representatives of the people, will not be blocked by Parliament. Observers say that Moody’s carried out its latest appraisal of India’s sovereign credit rating and outlook at least partly confident that PM Manmohan Singh would leave no stone unturned, including even embarrassment on the floor of Parliament, to tune India’s policy in the interests of foreign retail giants.
On news of the Moody’s evaluation, buying in the market was so strong that all 13 sectoral indices of the BSE closed with gains of 0.27-3.2 per cent. The National Stock Exchange’s 50-stock index, Nifty, too shot up by 91.55 points (1.62 per cent) to a two-month high of 5,727.45. [WITH INPUTS FROM PTI]